The number of construction permits issued for new homes has been nearly halved from a year earlier in September, also marking a third consecutive month of on-year drop, the government said Sunday.
Construction permits issued for new homes came to 48,024 last month, down 45.4 percent from 87,955 issued in the same month last year, according to the Ministry of Land, Infrastructure and Transport.
The ministry attributed the drop to a base effect, noting home construction permits had more than doubled from a year earlier in September 2015 due to large reconstruction projects.
"The September tally dropped greatly from the same month last year, but it remained close to a three-year average of 53,000 for the month," the ministry said in a press release.
Such a sharp drop, however, followed a government announcement in August that it will cut down on the supply of new apartments over the coming years as a way of limiting the rise in household debts.
September also marked the third consecutive month of drop. Home construction permits had plunged 25.9 percent on-year in July and again 20.8 percent in August.
By region, new home permits issued in Seoul and its immediate surrounding areas tumbled 71 percent on-year to 14,872.
The capital region, which is home to nearly half of the country population of 50 million, has largely been blamed for the recent fervor for homes, and thus the rise in household borrowing.
The government has said it will soon announce a set of measures aimed at curbing real estate speculation in Seoul.
Home construction permits issued in areas outside of the capital region slipped only 7 percent on-year to 33,152 in September, the ministry said. (Yonhap)
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